Is Asian Turbulence a Win for China?

While this week’s sell-off in Asian currency and bond markets does not, as yet, amount to a crisis in our view, it is obviously cause for concern. At this stage, we think two outcomes are likely: one is that central banks and supranational funding agencies will work together to avert a full-blown crisis; the other [...]

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Emerging-Market Currency Returns: Fact vs. Fiction

By Paul DeNoon (pictured) and Kenneth Colangelo Emerging-market (EM) currencies have long been a popular investment theme. It’s commonly assumed that attractive returns can be earned from the appreciation of EM currencies versus the dollar. The truth is a bit more complicated.

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China’s Uncertainties Won’t Stop Renminbi’s Rise

Recent data releases and the transition to new political leadership have created some uncertainty about China’s short-term economic outlook. While positive growth surprises are unlikely in 2013, we still think nothing can stop the long-term appreciation of China’s currency, the renminbi (RMB).

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Investors Vote for Equities as Japanese Elections Near

Takeo Aso and Nicholas Davidson Current bearishness on the yen is reigniting investors’ interest in Japanese equities. In our view, yen weakness is likely to continue and may help boost the Japanese equity market, with undervalued companies poised to benefit most.

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Five Reasons Why We Think the Renminbi is Still a Buy

The renminbi (RMB) has strengthened significantly in recent years. We don’t think it will continue to appreciate at the same pace, and in the very short term we may see two-way volatility in the exchange rate. But we are still positive on the currency, especially in the medium term.  Here are five reasons why.

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Stronger Renminbi Is Key to Chinese Rebalancing

China’s recent move to widen the renminbi’s trading band is unlikely to impact the near-term path of the currency, but we believe it represents another important step forward in the country’s financial liberalization. Below, my colleague Anthony Chan explains how a more flexible—and stronger—currency is a vital component of policymakers’ efforts to rebalance China’s export-dependent [...]

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The Chinese Currency’s Great Leap Forward

China is set to overtake the US as the world’s largest economy in less than a decade, but its currency, the renminbi, still accounts for just a tiny fraction of global trade settlement. While there’s a long way to go before it’s viable as a global reserve currency, we think that the renminbi will challenge [...]

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China’s Currency: Still Heading Up

The prospect of currency gains has long been a key attraction for investors seeking exposure to Chinese assets. But this week, The People’s Bank of China said China’s currency, the renminbi, was now close to its “equilibrium value.” We think the currency’s  appreciation is far from over, as my colleague Anthony Chan explains below.

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Managing Currency Risk Is Crucial for Emerging-Market Investments, Too

Mexican equities have far outperformed Chinese equities over the past 20 years, although China’s economy has left Mexico’s in the dust. Why? China managed its currency tightly, Mexico did not. For more on the relationship between GDP growth and equities—and the investment implications—see my colleague Morgan Harting’s guest post on FT.com. This post contains links to [...]

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Asian Bonds: An Underappreciated Opportunity

With bond yields at historical lows and the risk-free status of many developed countries under question, many investors are looking to diversify the income stream in the defensive part of their strategies. So why are Asian ex Japan bonds typically so underrepresented in fixed-income portfolios?

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